Senate Bill 2956

AN ACT TO AUTHORIZE AN INCOME TAX DEDUCTION FOR INDIVIDUAL TAXPAYERS WHOSE LEGAL RESIDENCE IS IN HANCOCK, HARRISON, JACKSON, GEORGE, STONE OR PEARL RIVER COUNTIES FOR CERTAIN COSTS OF RETROFITTING THEIR RESIDENCE WITH CERTAIN FORTIFICATION MEASURES THAT ARE DESIGNED TO INCREASE THE RESISTANCE OF THE RESIDENCE TO HURRICANE, TORNADO, OR CATASTROPHIC WINDSTORM EVENT DAMAGE; TO PROVIDE THE AMOUNT OF THE DEDUCTION; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) An individual taxpayer, whose legal residence is located in Hancock, Harrison, Jackson, George, Stone or Pearl River Counties, shall be allowed a deduction from taxable income, regardless of whether the taxpayer itemizes his or her income tax deductions, in calculating the income tax imposed pursuant to Section 27-7-5, for certain retrofit costs as described in this section in the amount authorized in subsection (5) of this section. The deduction shall be allowed for the costs actually incurred by the taxpayer to retrofit a structure qualifying as a residence of a taxpayer with those fortification measures described in subsection (3) of this section to make the residence more resistant to loss due to a hurricane, tornado, or other catastrophic windstorm event. For the purposes of this act, a residence may include a secondary residence owned by a Mississippi taxpayer.

(2) In order to qualify for the state income tax deduction authorized in this section:

(a) The costs must be associated with those fortification measures described in subsection (3) of this section that are designed to increase the resistance of the residence to hurricane, tornado, or catastrophic windstorm event damage; however, the costs shall not include ordinary repair or replacement of existing items.

(b) A taxpayer claiming the deduction must receive the certification prescribed in subsection (4) of this section and shall provide the certification upon request of the Department of Revenue to prove the taxpayer is entitled to the deduction.

(3) To qualify for the deduction provided in this section, an insurable property shall be retrofitted to:

(a) The Gold, Silver or Bronze levels, all as defined in the Fortified Existing Homes requirements as may from time to time be adopted by the Institute for Business and Home Safety; or (b) Another mitigation program, or other construction technique, or other standardized code which may be approved by the Commissioner of Insurance.

(4) An insurable property must be certified as conforming to Fortified Existing Home requirements only after inspection and certification by a Fortified for Safe Living Standards (FFSLS) certified inspector or certified to be in conformity to the other mitigation program, other construction technique, or standardized code by a certified or licensed building inspector.

(5) The aggregate tax deduction allowed pursuant to this section for all taxable years beginning with the 2012 taxable year shall not exceed the lesser of the following:

(a) Fifty percent (50%) of the retrofitting cost incurred.

(b) Three Thousand Dollars ($3,000.00).

(6) The cost of items that otherwise qualify for the deduction that are purchased with any available grant funds are not eligible for this deduction if the grants are not included in the income of the taxpayer.

SECTION 2. This act shall take effect and be in force from and after January 1, 2012.